On child poverty, choosing services over benefits is a progressive dead end

Labour must prioritise investment in universal childcare alongside income support, rather than simply trading one off against the other.

Are investments in services a better way of reducing child poverty than benefits that support income? ‘Yes’ argued IPPR director Nick Pearce this week when he called on Labour to find a new way to tackle child poverty that doesn’t rely on cash transfers, but instead builds institutions that attract popular support and can’t be dismantled at whim.

Much of what Nick says, as you would expect, makes good sense. Most would agree that a child poverty strategy that relies solely on benefits to prop up families’ incomes is neither effective nor sustainable. But equally, a strategy that regards children’s centres and expanded childcare as the only answer to the child poverty problem is also likely to be ineffectual.

The UK and the international evidence suggests that choosing services over benefits is a false choice and a progressive dead end.

Labour’s commitment to end child poverty drove action to (i) make work pay (ii) invest in childcare and early years services, and (iii) boost the incomes of families with children using the tax and benefits system. As a result, between the mid-1990s and 2008 the UK had the largest reduction in child poverty in the OECD. This unprecedented success was because a broad approach was pursued, not because the child poverty strategy was reduced to a simplistic choice of benefits over services. 

It is right to point out that those countries with low child poverty rates generally have higher rates of parental employment than the UK, but they certainly don’t achieve this at the expense of family benefits. OECD data shows that the Nordic countries all provide children’s benefits at broadly the same level as the UK and also provide other, more generous, benefits to families. The difference between us and them is that they prioritise investment in universal childcare alongside income support rather than simply trading one off against the other.

The spending switch we need to make is from spending billions dealing with the costs of child poverty to investing in preventing child poverty in the first place.

This is not about making tough choices as we pitch progressive ideas  - ‘childcare vs. child benefit’ - against each other. It’s actually more ambitious and urgent than that. Instead, it is a big decision to get the fundamentals rights -  to make our society fairer and our economy stronger -  which requires us to rethink public spending across the whole of government.

We know that without widespread public support, even policies proven to reduce child poverty are at the mercy of, sometimes unforgiving, political and economic forces.

Yet the appropriate response to evidence of declining public support, such as the analysis of existing polling published by Joseph Rowntree Foundation this week, is surely not just to build popular institutions but to also build a popular consensus around poverty reduction that can weather the bad times as well as good.

As others have noted, it is simply not correct to conceive attitudes as something solid and immovable.  We know polls show that the public regard the welfare state as one of the country’s finest achievements and, in future, there’s good reason to believe that rising living costs and falling living standards will be an important election battleground issue.

It’s worth bearing in mind that the policies that will make a difference to poverty  - investment in child benefit, affordable housing, childcare and decent jobs – are likely to be popular. Politicians may just find that showing leadership and championing policies that tackle poverty may have electoral as well as child poverty pay offs, too. 

A girl paints a wall in the Heygate Estate in the Walworth area on April 24, 2013 in London. Photograph: Getty Images.

Alison Garnham is chief executive of the Child Poverty Action Group

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An Irish Sea border – and 3 other tricky options for Northern Ireland after Brexit

There is no easy option for Northern Ireland after Brexit. 

Deciding on post-Brexit border arrangements between Northern Ireland and the Irish Republic is becoming an issue for which the phrase "the devil is in the detail" could have been coined. Finding a satisfactory solution that delivers a border flexible enough not to damage international trade and commerce and doesn’t undermine the spirit, or the letter, of the Good Friday Agreement settlement is foxing Whitehall’s brightest.

The dial seemed to have settled on David Davis’s suggestion that there could be a "digital border" with security cameras and pre-registered cargo as a preferred alternative to a "hard border" replete with checkpoints and watchtowers.

However the Brexit secretary’s suggestion has been scotched by the new Irish foreign minister, Simon Coveney, who says electronic solutions are "not going to work". Today’s Times quotes him saying that "any barrier or border on the island of Ireland in my view risks undermining a very hard-won peace process" and that there is a need to ensure the "free movement of people and goods and services and livelihoods".

The EU’s chief Brexit negotiator, Michel Barnier, has made dealing with the Irish border question one of his top three priorities before discussions on trade deals can begin. British ministers are going to have to make-up their minds which one of four unpalatable options they are going to choose:

1. Hard border

The first is to ignore Dublin (and just about everybody in Northern Ireland for that matter) and institute a hard border along the 310-mile demarcation between Northern Ireland and the Irish Republic. Given it takes in fields, rivers and forests it’s pretty unenforceable without a Trump-style wall. More practically, it would devastate trade and free movement. Metaphorically, it would be a powerful symbol of division and entirely contrary to the spirit of the Good Friday Agreement. The Police Federation in Northern Ireland has also warned it would make police officers "sitting ducks for terrorists". Moreover, the Irish government will never agree to this course. With the EU in their corner, there is effectively zero chance of this happening.

2. Northern EU-land

The second option is to actually keep Northern Ireland inside the EU: offering it so-called "special status". This would avoid the difficulty of enforcing the border and even accord with the wishes of 56 per cent of the Northern Irish electorate who voted to Remain in the EU. Crucially, it would see Northern Ireland able to retain the £600m a year it currently receives from the EU. This is pushed by Sinn Fein and does have a powerful logic, but it would be a massive embarrassment for the British Government and lead to Scotland (and possibly London?) demanding similar treatment.

3. Natural assets

The third option is that suggested by the Irish government in the Times story today, namely a soft border with customs and passport controls at embarkation points on the island of Ireland, using the Irish Sea as a hard border (or certainly a wet one). This option is in play, if for no other reason than the Irish government is suggesting it. Again, unionists will be unhappy as it requires Britain to treat the island of Ireland as a single entity with border and possibly customs checks at ports and airports. There is a neat administrate logic to it, but it means people travelling from Northern Ireland to "mainland" Britain would need to show their passports, which will enrage unionists as it effectively makes them foreigners.

4. Irish reunification

Unpalatable as that would be for unionists, the fourth option is simply to recognise that Northern Ireland is now utterly anomalous and start a proper conversation about Irish reunification as a means to address the border issue once and for all. This would see both governments acting as persuaders to try and build consent and accelerate trends to reunify the island constitutionally. This would involve twin referendums in both Northern Ireland and the Republic (a measure allowed for in the Good Friday Agreement). Given Philip Hammond is warning that transitional arrangements could last three years, this might occur after Brexit in 2019, perhaps as late as the early 2020s, with interim arrangements in the meantime. Demographic trends pointing to a Catholic-nationalist majority in Northern Ireland would, in all likelihood require a referendum by then anyway. The opportunity here is to make necessity the mother of invention, using Brexit to bring Northern Ireland’s constitutional status to a head and deal decisively with the matter once and for all.

In short, ministers have no easy options, however time is now a factor and they will soon have to draw the line on, well, drawing the line.

Kevin Meagher is a former special adviser at the Northern Ireland Office and author of "A United Ireland: Why unification is inevitable and how it will come about"

Kevin Meagher is associate editor of Labour Uncut and a former special adviser at the Northern Ireland office.